Market Trends of united arab emirates hybrid and electric vehicles Industry
The United Arab Emirates demonstrates consistent growth in electric vehicle adoption across all segments
- In the United Arab Emirates, from 2022 to 2023, there was a notable surge in the shift toward electric vehicles (EVs) across various segments. In the passenger car industry, the adoption of electric models jumped from 2% in 2022 to 4% in 2023. Light commercial vehicles (LCVs) witnessed a more significant leap, with the share of electric LCVs rising from 0.20% in 2022 to 1.09% in 2023. The medium and heavy-duty truck (M&HDT) category, starting at 0% in 2022, witnessed a modest uptick to 0.10% in 2023. Buses, too, exhibited a consistent climb, with the electrification rate rising from 0.50% in 2022 to 1.96% in 2023.
- From 2017 to 2022, the UAE witnessed a gradual but notable surge in EV adoption across all vehicle categories. The share of electric passenger cars rose from 2% in 2017 to 5% in 2022. LCVs, starting at a modest 0.20% in 2017, accelerated to 1.98% by 2022. The M&HDT segment, previously stagnant, began its electrification journey in 2022, reaching 0.10%. Buses maintained a steady upward trajectory, climbing from 0.50% in 2017 to 3.42% in 2022. The two-wheeler segment witnessed a significant surge, with electric two-wheelers accounting for 1.50% in 2017 and soaring to 7.81% by 2022.
- In 2030, projections indicate a consistent and robust growth in EV adoption in the United Arab Emirates. By 2030, passenger cars are expected to have an electrification rate of 12%. The LCV segment is projected to reach 6.00% by 2030. After its initial phase, the M&HDT category is anticipated to hit 4.00% by 2030. Buses are on track for a 10.00% electrification rate by 2030, while the two-wheeler segment, displaying the most rapid growth, is poised to reach a significant 22.00% by 2030.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The UAE's population is booming, driven by factors like an influx of expatriates and a thriving economy
- In the United Arab Emirates, CVP was set to slightly decrease in 2023 after a surge in 2022, reflecting economic recovery and government initiatives
- The UAE's auto interest rate surged significantly, reflecting adaptive financial measures in response to changing economic conditions
- The UAE is undergoing a significant shift toward sustainable mobility, with a marked expansion in its EV charging infrastructure from 2022 to 2023 and beyond
- During 2024-2030, the UAE's automotive electrification journey is expected to showcase a strong start in passenger cars and LCVs, with a decline in later years
- Increasing fuel subsidies for low-income households, such as a USD 7.62 billion allocation to a social support program, supporting the market
- The UAE's GDP per capita is projected to rise by 2030, driven by sustainability, technology, and strategic international partnerships, reflecting a positive economic outlook
- The UAE's adaptive inflation, influenced by energy market dynamics and economic diversification efforts, is projected to stabilize, fostering sustained economic growth
- The UAE's MaaS category is driving forward with resilience and growth in shared mobility
- The UAE battery market is capitalizing on the dual advantages of declining prices and the growing focus on sustainable energy
- Sales in the UAE used car market thriving due to demand for luxury vehicles from a transient workforce
- The UAE's electric vehicle (EV) industry is rapidly expanding, driven by strong governmental policies, international partnerships, and significant investments in local manufacturing and infrastructure
